GREY:CYXTF - Post by User
Post by
Uraniumon Mar 26, 2018 2:12pm
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Post# 27783032
Financing Screw Up
Financing Screw UpThis is one of the reasons why investors have lost any confidence with this management group. They screwed up with their first financing and had to cancell it and negotiate another deal.
They are now paying a big premium!!
Description of New Financing
CryptoGlobal has agreed to enter into a secured credit facility with a strategic investor in the amount of up to CAD $15 million to be drawn in tranches of CAD $5 million each at CryptoGlobal's option (the "Credit Facility"). Each tranche of the Credit Facility will have a term of two years and bear interest, when amounts are drawn, at the rate of 10% per annum, payable quarterly. In consideration for the Credit Facility, the company will pay a standby set-up fee of CAD $750,000 on closing.
The first tranche of CAD $5 million (the "Tranche 1 Loan") will be drawn on closing which is expected to occur in the first half of March, 2018, subject to settling definitive documentation, completion of satisfactory due diligence on the part of the investor and the approval of the TSX Venture Exchange (the "TSXV"). Amounts outstanding under the Tranche 1 Loan will be convertible at the option of the investor into units of the company ("Units") at a conversion price of CAD $1.00 per Unit. Each Unit will consist of one common share of the company (a "Common Share") and three-quarters of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable to acquire one Common Share (a "Warrant Share") for a period of two years following the date of issuance at an exercise price of CAD $1.00 per Warrant Share.
Terms relating to the conversion of subsequent tranches under the Credit Facility will be determined in the context of the market, if and when the company decides to draw on the remaining tranches of the Credit Facility.
Any securities issued by the company on the closing of the Credit Facility, as well as any securities issued upon conversion of the Tranche 1 Loan or in connection with any subsequent tranches under the Credit Facility, will be subject to a statutory four month and one day hold period.